Analysis of LSD Track Pattern and Development Trends

The LSDFi ecosystem has initially formed a structure. Classified by layers, SSV Network, Obol Labs, and other DVT technology service providers can be regarded as the L0 layer. Lido, Ankr, Coinbase, and other LST issuers form the L1 layer. Fixed income products, stablecoins, yield aggregation, and others designed based on LST occupy the L2 layer. Governance disputes triggered by veToken, among others, belong to the L3 layer.

Overall:

1. The technical barrier of Layer 0 is the highest, but attention should be paid to the actual utility of the token.
2. The L1 layer has formed a leader, and new entrants find it difficult to shake the TOP3 position.
3. The barriers to entry on L2 are relatively low, testing the team's capabilities; the more foundational DeFi strategy projects there are, the more prosperous it becomes.
4. The development of Layer 3 is limited by Layer 2 products, but the imagination space is vast.

In terms of the staking rate, the ETH staking volume in Shanghai has steadily increased after the upgrade, breaking through 16% in June. It is expected to stabilize around 25% in the future, mainly influenced by factors such as the decentralization level of ETH, its practicality, external scalability, and compliance.

In terms of centralized and decentralized staking, decentralized platforms account for less than 40%, while CEX accounts for about 20%. Lido's dominance raises concerns about centralization, but as a vested interest, it will also maintain the Ethereum ecosystem. It is expected that the top 3 leaders will be difficult to shake, but the diversification of L1 is a trend.

In terms of yield, multi-layer nested structures can increase staking yields to over 10%. Sustainable projects generally have real yields + application scenarios + good token economics.

The development of LSD on Layer 2 is rapid, especially on Arbitrum. The low Gas fees and fast transactions of Layer 2 benefit the development of the LSD ecosystem.

Users have different tiered needs, and projects need to balance aspects such as security, yield, degree of decentralization, token economics, and UI/UX.

Overall, the LSD track has entered Summer, but the scale is difficult to compare with DeFi Summer. A real outbreak may need to wait until the bull market arrives. Future trends include cross-layer products, Layer 2 layouts, etc. Investors should recognize their risk preferences and choose high-security products to build strategies.